Importance of Health Insurance in India

‘Health is Wealth’. Nothing makes you pleased, when you are ill. You always want to be in a good health, but there are some external factors that actually impact your health such as deteriorating environment, stress at work, hectic lifestyle, etc. According to recent statistics, there are 45 million patients of coronary artery disease, 50.8 million diabetics, prevalence of hypertension is 25-30% in urban and 10-15% in rural regions in India. It is thus quite essential to make arrangements that can take care of the medical emergencies for you & your family.

Here, comes the role of a health insurance. A health insurance policy provides a coverage against expenses that incurred due to hospitalization or any medical procedure required to treat bodily injuries, illnesses or other medical condition.

Need of Health Insurance

Following are the top reasons that emphasizes on the need of health insurance policy.

Skyrocketing Medical Costs: With day to day medical advancements, medical treatment cost is also escalating at a huge pace. Medical cost in India is rising at a rate of over 10% and the burden of health care is getting heavier. In order to ensure that you don’t have to face a financial shock in getting medical treatment, it is essential to have a health insurance.

Busy Lifestyle: In the present corporate environment, where people are worried about achieving the targets, they don’t get the time to look upon their health. Increasing work hours is also one of the common reasons that lead to increase in health issues. According to a research, 46% of workforce in organizations are suffering from stress. It is also found that 43% of the workforce with abnormal Body Mass Index is suffering from hypertension and diabetes. Going for treatment will add-up the cost that you have to bear and it thus becomes essential to buy a health plan that can cover all the medical costs.

Financial Planning: Hospital bills bring a huge financial shock even for small ailments. Getting medical treatment for a critical illness costs you lakhs of rupees that will make the financial condition worsen for you & your family. Due to payment of huge medical bills, you will not be able to achieve other financial goals. Having a health cover will cover the medical bills and you don’t need to pay from your pocket.

Coverage Available Under Health Insurance

When you opt for a health insurance policy, you can get cover for the medical expenses as listed below.

In-Patient Hospitalization Expenses: A health cover pays the medical expenses incurred due to hospitalization that may occur due to an illness, accident or other medical condition. It is required to get a minimum of 24 hours of hospitalization to avail cover for hospitalization cost.

Pre & Post Hospitalization Expenses: A health plan covers the medical expenses incurred for some pre-specified number of days before and after the hospitalization. Usually, a health cover is available for 30 days before hospitalization and 60 days post discharge from hospital.

Domiciliary Hospitalization: When a medical treatment exceeding three days requires treatment at the hospital, but actually taken at home. The expenses incurred in such treatment are also covered under a health policy, as specified under the policy chosen.

Day Care Procedures: Day care procedures normally require less than 24 hours of hospitalization and insurance companies have now started covering such surgery/medical procedure. The insurance company provides its list of day care procedures covered under the plan.

Under a health plan, you can also avail benefits such as Emergency Ambulance Cover, No Claim Bonus, Free Health Check-up, Hospital Cash Benefit. All these coverages/benefits focus on the importance of health insurance and it is recommended to choose a right health insurance plans.

Best Health Insurance Plans in India

Health Plans Sum Insured Pre & Post Hospitalization No Claim Bonus Pre-existing Diseases
Max Bupa Health Companion Rs 2 Lacs to 100 Lacs 30 days & 60 days Up to 100% of Base Sum Insured After continuous coverage for 3/4 policy years, depending on sum insured chosen
Bajaj Allianz Health Guard Rs 1.5 Lacs to 10 Lacs 60 days & 90 days Up to 50% of Sum Insured After continuous coverage for 4 policy years
Future Generali Health Suraksha- Individual Plan Rs 50,000 to 10 Lacs 60 days & 90 days Up to 50% of the sum insured After 4 years of continuous coverage
Religare Care Rs 3 Lacs to 75 Lacs 30 days & 60 days Up to 150% of Sum Insured After continuous coverage for 4 policy years
Star Health Comprehensive Insurance Policy Rs 5 Lacs to 25 Lacs 30 days & 60 days Up to 100% of Sum Insured After 4 years of continuous coverage


A health insurance policy provides cover for the insured towards the hospitalization cost incurred. Not only the hospitalization expenses, you can also avail cover for pre & post hospitalization, domiciliary treatment, day care procedures, ambulance charges, etc.

The best health plans mentioned in this article are not the exhaustive ones, you may pick any other health insurance policy that provides a complete cover for your entire family.

Harjot Singh Narula

Harjot Narula is founder and CEO of, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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